Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of outsourcing solutions provider iGATE
So what: iGATE will pay $921 million for 63% of Patni and give an open offer to purchase an additional 21% of the company for $301 million. Funding from Apax Partners LLP, a private equity firm, backs the deal.
Now what: The curious part of this purchase is that iGATE is paying more than its own market cap for Patni. Analysts aren't impressed with the move to buy a bigger competitor, saying iGATE doesn't really bring anything to the table in the purchase. The risks of such a big deal are immense, and I have to sell today's move along with the rest of the market.
Interested in more info on iGATE? Add it to your watchlist.
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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